I own an IT company in the UK with a physical presence and employees. This is staying where it is. The company turns over about GBP£500k with a profit margin of about 20-25%. CT isn't an issue because we always have a big R&D claim so they end up sending us money. If/when UK gov stop R&D tax credits, I would be looking to move this company too but my accountant and solicitor both said it's unlikely to stop anytime soon, even with the CT hike.
The company has 5 A shares and 5 B shares. I own the A shares and my wife owns the B shares. We separated in Feb and will start going through the divorce process soon. Our finances are already separate apart from these shares and we have agreed that she will transfer the shares back to me and then go down the "clean break" route.
Back in March, my accountant has advised that she should send me an email stating her intention to give me the shares because the only tax free way of getting the shares from her would be as a wife-husband gift in the same tax year as separation and as long as there is an agreement to transfer them in that tax year, the actual transfer could be done later.
I also do some contract work for a company in NV, USA, and own a property there. I am in the process of moving there, partly for the lifestyle, partly for the tax benefits (no state income tax). I decided to skip the visa and apply for a green card directly. I expect to have it at the beginning of Sep. The company I do contract work with has basically offered me the same position as a FT employee to facilitate the green card.
Since Feb I have been out of the UK to avoid COVID restrictions. 3 months in NV USA, 2 weeks in CR, 1 week in PA, 2 weeks in IL etc. I don't know if I can use that to my benefit for the 21-22 tax year. I plan to only be in the UK for about a week to sell my car and attend an interview at the UK embassy. No property owned or rented in the UK.
My accountant is useless when it comes to anything international or "creative". So I'm looking for any advice on how to handle the next few months to minimise my tax obligations overall, which will probably mean trying to pay tax in the US as opposed to the UK ASAP. Specifically:
1. Any tax or considerations taking shares with me from the UK to the US?
2. What if I want to sell the company? I guess just wait until I'm in the US to pay 15% federal CGT as opposed to 20% in the UK?
3. In the 20-21 tax year, the original plan would have been for my wife and I will each declare £50k income, which is what we did in 19-20. Is it better to make the DLA overdrawn, try to pay it back just before the S455 rate of 32.5% kicks, quickly declare tax residence in NV then withdraw it, as soon as my green card arrives?
4. Should I use the same approach for the 21-22 tax year? I will need to take something out of the company to live on over the next few months.
5. Are there any tricks to avoid the S455 rate if I don't have enough cash to clear the overdrawn DLA is one go? I guess you can't pay back and withdraw chunks of £10k or so LOL
6. I registered a Nevada LLC to be able to quickly start the E2 visa process if the green card falls through (seems unlikely). Could that be useful in any way here?
The company has 5 A shares and 5 B shares. I own the A shares and my wife owns the B shares. We separated in Feb and will start going through the divorce process soon. Our finances are already separate apart from these shares and we have agreed that she will transfer the shares back to me and then go down the "clean break" route.
Back in March, my accountant has advised that she should send me an email stating her intention to give me the shares because the only tax free way of getting the shares from her would be as a wife-husband gift in the same tax year as separation and as long as there is an agreement to transfer them in that tax year, the actual transfer could be done later.
I also do some contract work for a company in NV, USA, and own a property there. I am in the process of moving there, partly for the lifestyle, partly for the tax benefits (no state income tax). I decided to skip the visa and apply for a green card directly. I expect to have it at the beginning of Sep. The company I do contract work with has basically offered me the same position as a FT employee to facilitate the green card.
Since Feb I have been out of the UK to avoid COVID restrictions. 3 months in NV USA, 2 weeks in CR, 1 week in PA, 2 weeks in IL etc. I don't know if I can use that to my benefit for the 21-22 tax year. I plan to only be in the UK for about a week to sell my car and attend an interview at the UK embassy. No property owned or rented in the UK.
My accountant is useless when it comes to anything international or "creative". So I'm looking for any advice on how to handle the next few months to minimise my tax obligations overall, which will probably mean trying to pay tax in the US as opposed to the UK ASAP. Specifically:
1. Any tax or considerations taking shares with me from the UK to the US?
2. What if I want to sell the company? I guess just wait until I'm in the US to pay 15% federal CGT as opposed to 20% in the UK?
3. In the 20-21 tax year, the original plan would have been for my wife and I will each declare £50k income, which is what we did in 19-20. Is it better to make the DLA overdrawn, try to pay it back just before the S455 rate of 32.5% kicks, quickly declare tax residence in NV then withdraw it, as soon as my green card arrives?
4. Should I use the same approach for the 21-22 tax year? I will need to take something out of the company to live on over the next few months.
5. Are there any tricks to avoid the S455 rate if I don't have enough cash to clear the overdrawn DLA is one go? I guess you can't pay back and withdraw chunks of £10k or so LOL
6. I registered a Nevada LLC to be able to quickly start the E2 visa process if the green card falls through (seems unlikely). Could that be useful in any way here?
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